If your Irish limited company pays out an extra amount to you as its director and shareholder, how much reaches your pocket as salary versus as a dividend? This calculator compares both routes using 2026 rates and shows the company-level effect that most people forget: salary is deductible for Corporation Tax, dividends are not.

What the calculator assumes

The whole payout is taxed at your marginal rate: for higher-rate taxpayers 40% income tax, 8% USC (income over EUR 70,044) and 4.4% PRSI (the blended 2026 employee rate is approximately 4.24%, rising to 4.35% from 1 October 2026); for standard-rate taxpayers 20% income tax, 3% USC and 4.2% PRSI. The 2026 standard rate cut-off is EUR 44,000 for a single person. Dividend Withholding Tax of 25% is credited against your final liability, so it changes the timing, not the total. The company’s Corporation Tax deduction is taken at the 12.5% trading rate. Real situations have credits, thresholds and PRSI subtleties this tool ignores.

When dividends still make sense

Despite the higher overall cost, dividends can suit cases such as non-resident shareholders (potential DWT exemption with form V2A), shareholders who are not employees or directors, or one-off distributions of accumulated profits. The close company surcharge on undistributed passive income can also push a company towards distributing. The full breakdown, including a worked example, is in our guide on how to pay yourself from a limited company in Ireland. For payroll setup, see payroll services for your Irish Ltd, and for the company-side tax picture, our Corporation Tax guide.

Rates verified June 2026 (Revenue, citizensinformation.ie). Estimates only, not tax advice; talk to an accountant before deciding.